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The effect of power outages and cheap talk on willingness to pay to reduce outages

Carlsson, F; Martinsson, P and Akay, A (2011) In Energy Economics 33(5). p.790-798
Abstract
Using an open-ended contingent valuation survey, we analyze how (i) experience of a power outage due to one of the worst storms ever to hit Sweden and (ii) a cheap talk script affect respondents' WTP to avoid power outages. Experience significantly increases and a cheap talk script significantly decreases the proportion of respondents with zero WTP, and as a result stated WTP is lower with experience and the cheap talk script. The paper concludes with a discussion on the use of valuation studies shortly after the occurrence of an undesirable event. (C) 2011 Published by Elsevier B.V.
Please use this url to cite or link to this publication:
author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Contingent valuation, Cheap talk, Experience, Power outages
in
Energy Economics
volume
33
issue
5
pages
790 - 798
publisher
Elsevier
external identifiers
  • scopus:80052147349
ISSN
0140-9883
DOI
10.1016/j.eneco.2011.01.004
project
BECC
language
English
LU publication?
no
id
6a5b1594-bcc1-42d2-a6f6-75893abefece (old id 4448562)
date added to LUP
2014-05-23 12:11:17
date last changed
2017-08-13 03:06:48
@article{6a5b1594-bcc1-42d2-a6f6-75893abefece,
  abstract     = {Using an open-ended contingent valuation survey, we analyze how (i) experience of a power outage due to one of the worst storms ever to hit Sweden and (ii) a cheap talk script affect respondents' WTP to avoid power outages. Experience significantly increases and a cheap talk script significantly decreases the proportion of respondents with zero WTP, and as a result stated WTP is lower with experience and the cheap talk script. The paper concludes with a discussion on the use of valuation studies shortly after the occurrence of an undesirable event. (C) 2011 Published by Elsevier B.V.},
  author       = {Carlsson, F and Martinsson, P and Akay, A},
  issn         = {0140-9883},
  keyword      = {Contingent valuation,Cheap talk,Experience,Power outages},
  language     = {eng},
  number       = {5},
  pages        = {790--798},
  publisher    = {Elsevier},
  series       = {Energy Economics},
  title        = {The effect of power outages and cheap talk on willingness to pay to reduce outages},
  url          = {http://dx.doi.org/10.1016/j.eneco.2011.01.004},
  volume       = {33},
  year         = {2011},
}